Tensions between Israeli settlers and Palestinians are again rising which threatens to bring about a new round of clashes, UN Special Coordinator for the Middle East Peace Process Tor Wennesland has warned.

"Tensions rising again in Jerusalem at a very fragile and sensitive security and political time, when the United Nations and Egypt are actively engaged in solidifying the ceasefire," Wennesland said via Twitter. He was referring to the so-called Flag March to be held in the Old City of occupied Jerusalem, which was called for by settler nationalists and approved by the new Israeli government.

Wennesland urged all sides to act in a responsible manner and to avoid any activities that might be seen as provocative.

"I urge all relevant parties to act responsibly and avoid any provocations that could lead to another round of confrontation," he added in his message.

Right wing nationalist Israelis opposed to the creation of the new center-right collation government under Naftali Bennett and Yair Lapid have announced a march in and around the historic Old City of Jerusalem on Tuesday. The march, which celebrates the anniversary of the occupation of East Jerusalem is seen as provocative by the Palestinians who consider the city as their religious and political capital.